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people or organizations with needs or wants and the ability and willingness to buy |
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market |
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a subgroup of people or organizations sharing one or more characteristics that cause them to have similar products needs |
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market segment |
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the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups |
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market segmentation |
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characteristics of individuals, groups, or organizations |
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segmentation bases (variables) |
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geographic segmentation |
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segmenting markets by region of a country or the world, market size, market density, or climate |
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a series of stages determined by a combination of age, marital status, and the presence or absence of children |
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family life cycle (FLC) |
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market segmentation on the basis of personality, motives, lifestyles, and geodemographics |
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psychodemographic segmentation |
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segmenting potential customers into neighborhood lifestyle categories |
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geodemographic segmentation |
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the process of grouping customers into market segments according to the benefits they seek from the product |
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benefit segmentation |
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dividing a market by the amount of product bought or consumed |
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usage-rate segmentation |
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a principle holding that 20 percent of all customers generate 80 percent of the demand |
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80/20 principle |
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Describe the characteristics of markets and market segments |
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a market is composed of individuals or organizations with the ability and willingness to make purchases to fulfill their needs or wants. A market segment is a group of individuals or organizations with similar product needs as a result of one ore more common characteristic. |
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business customer who place an order with the first familiar supplier to satisfy product and deliver requirements |
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satisficers |
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business customers who consider numerous suppliers (both familiar and unfamiliar), solicit bids, and study all proposals carefully before selecting one |
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optimizers |
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a marketing approach that views the market as one big market with no individual segments and thus uses a single marketing mix |
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undifferentiated targeting strategy |
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a strategy used to select one segment of a market for targeting marketing efforts |
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concentrated targeting stategy |
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a situation that occurs when sales of a new product cut into sales of a firm's existing products |
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cannibalization |
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an individualized marketing method that utilizes customer information to build long-term, personalized, and profitable relationships with each customer |
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one-to-one marketing |
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developing a specific marketing mix to influence potential customers' overall perception of a brand, product line, or organization in general |
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positioning |
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changing customers' perception of a brand in relation to competing brands |
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repositioning |
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